Luxury Paris property prices rise 22 per cent

The Paris property market, which has long been popular with Brits buying property overseas, was one of the best performing property markets in Europe, according to a Knight Frank report.

Prime properties in Paris recorded the greatest property price growth of all the cities monitored within the Knight Frank Prime Global Cities Index.

The average price of a high-end home in Paris increased by a staggering 22.2% in March 2011, compared to the corresponding month last year, thanks largely to greater demand from foreign buyers.

The Paris property market is typically one of the most attractive European cities for investment, and is generally the most popular city buy a home in France.

Liam Bailey, head of residential research at Knight Frank, says: “The recent rise in Paris repeats the post-crash super-bounce in the central London market. These are the city markets where tight supply constraints meet high and growing demand from an expanding international high net worth individuals.

“In Paris's case, its strong performance can be attributed to burgeoning demand set against a backdrop of tight supply.”